XRP is experiencing a sustained downtrend, raising concerns among crypto traders and investors. The ongoing price slump is driven by a combination of technical and on-chain indicators that suggest further weakness for the altcoin.

As XRP struggles to gain upward momentum, several factors are contributing to bearish sentiment in the market. From resistance levels on the charts to a changing investor landscape, the outlook suggests that XRP’s downward trajectory may continue in the near term.

1. XRP Faces Mounting Resistance

Technical analysis points to a strong resistance level forming at the 200-day moving average, which XRP has failed to break above since May. This long-term indicator is currently acting as a barrier, halting any significant upside movement. The bearish momentum intensified after XRP was rejected at this level again in early November, signaling weak buyer interest.

Additionally, the daily RSI (Relative Strength Index) remains under 50, indicating that sellers continue to dominate the market. This combination of resistance and bearish momentum suggests a challenging path ahead for XRP bulls.

2. Active Addresses Decline

Looking at on-chain data, there’s a notable decrease in the number of active XRP addresses. According to figures from Santiment, this metric has steadily declined since early October. Fewer active addresses often reflect declining retail interest or reduced user engagement with the asset which can lead to lower trading volumes and price pressure.

This reduction in on-chain activity might also highlight a weakening fundamental foundation for XRP in its current trading context.

3. Traders Are Realizing Profits

Another bearish signal comes from profit-taking behavior visible on-chain. The Net Unrealized Profit/Loss (NUPL) metric shows many XRP holders chose to secure gains during the recent price rally. This wave of realized profits often precedes further sell-side pressure as the market adjusts to these sentiment shifts.

When long-term holders begin taking profits en masse, it usually indicates a lack of confidence in sustained price growth, ultimately feeding into negative momentum.

4. Whale Accumulation Is Slowing

One of the most concerning signs is the slowdown in wallet accumulation among large XRP holders. On-chain analytics reveal that whale wallets—those holding over 10 million XRP—have not increased their holdings significantly despite market dips. This lack of accumulation contrasts with typical bullish trends, where major investors buy the dip in anticipation of future rallies.

The absence of strong whale conviction could mean institutional or high-net-worth investors are cautious about short-term XRP prospects.

Recent chart pattern highlights XRP’s continued struggle to hold support levels.

Short-Term Outlook Remains Cautious

Although XRP has a loyal investor base and periodic surges in trading activity, the current landscape is fraught with red flags. Resistance at key technical levels, decreasing user activity, profit-taking behavior, and cautious whale movement all paint a challenging picture.

Related: XRP Price: $12M Max Pain for Bears

Traders and investors may need to exercise patience as XRP seeks a solid footing amid broader market uncertainty. Until momentum flips or fundamentals improve, the downtrend could persist.